Regulatory Alerts2008-11-05
Clarification on Provision 4.14 of the Consumer Protection Code
The Financial Regulator issued this letter to resolve uncertainty regarding the obligations of lenders and mortgage intermediaries under Provision 4.14 of the Consumer Protection Code. The document mandates that lenders must receive a signed declaration from intermediaries confirming they have already examined all original supporting documentation before releasing mortgage funds. It further clarifies that declarations implying future inspection are non-compliant and that this verification process must be applied to every individual mortgage application.
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